Developer secures extra time with Development Exit Finance

This property developer had previously been introduced to Ultimate Finance by Jordan Willis of JW Private Finance Limited when they benefited from a £800k Refurbishment Loan to complete a project comprising a two-bedroom flat with garden and a three-bedroom flat. When a combination of structural and supply chain issues delayed the project well into the term of the facility, the developer found themselves needing additional time to market and sell the properties and needed to act quickly to protect profitability.

A flexible approach to Bridging Finance

Jordan reached out to his dedicated Regional Director Alice Williams to discuss the funding requirements and explore possible options to support the developer’s ambitions. He says, “Ultimate Finance has showcased a great amount of expertise and flexibility, and its range of Bridging Finance solutions provides the breathing space that developers need nowadays, especially when faced with supply chain issues which have been more and more common recently”.

Ultimate Finance was able to refinance the project onto a £1m Development Exit Bridging Loan with 75% LTGDV which allowed for the additional time required to get the properties listed on the market and sold at profit. Alice explains, “Our client faced issues with unexpected structural issues which he thankfully had the required experience to deal with promptly, but then three different suppliers further delayed the project due to supply chain issues, an unfortunately too common problem many developers face in today’s market. This could have had considerable repercussions on the profit margins they had worked on, but our client kept calm and simply turned to us to help find a solution, which was the right way to keep moving”.

The “One-Team” approach

She continues, “At Ultimate Finance we have developed a “One-Team” approach which sees us work hand in hand with other departments such as Underwriting and Legal to get to the heart of a funding requirement and present a solution quickly and expertly. In this case, our Legal team was able to offer direct assistance to provide a full picture of what support Ultimate Finance could offer and became the point of liaison between Underwriting, Sales and external counsel to ensure a positive legal outcome for all and the right funding for our client”.

With the additional time on their side and the properties fully refurbished, the developer will now be listing them on the market, securing their profit margins and move onto the next project.